Cloud Economics Spawn New Business Models (Wall Street & Tech)

I haven’t been talking much about cloud computing lately. My life has been consumed by Dodd-Frank and swap execution facilities. But its good to switch it up.

The real benefit of cloud has always been cost efficiency. Why should servers sit idle overnight when someone in Japan can use them while you sleep? We also know that average server utilization on Wall Street is low – around 30% – and cloud can help with that:

Rather than own their own hardware, firms can rent the servers, similar to leasing a car, says Kevin McPartland, senior analyst with Tabb Group.